Many of you have by now glanced at the first-quarter venture investment data from the MoneyTree Report. Here is a deeper dive into details you may have unintentionally overlooked.
The study, as you know, is generated by PricewaterhouseCoopers and the National Venture Capital Association, and based on data provided by Thomson Reuters, publisher of this blog.
Several points are worth making. First, notice the quarterly increase in the average deal size to $8 million, a significant jump from the prior quarter ($6.8 million) and Q1 2010 ($6.6 million). This isn’t terribly surprising, given that VCs did several huge deals, driving up the average.
Also note the revival in cleantech investing. Cleantech startups attracted more cash than biotech companies, though not as much as software businesses, breaking the $1 billion barrier.
Meanwhile, the quarter saw a decrease in funding for Internet-specific companies, despite the excitement stirred up by Facebook, Groupon and Twitter. It is hard to interpret that as a signficant trend, as the MoneyTree Report tracks investment only in U.S.-based companies. Domestic VCs are increasingly investing abroad and there have been several huge deals for Internet companies based in China and elsewhere this year.
Finally, take a look at the softness in seed investing. Is this an opportunity for the contrarian or just the temporary fallout of a shift to later stage in response to the better IPO market?
Our slideshow follows.
[slide title=”Total Investments”]
[slide title=”Average Deal Size”]
[slide title=”Investment By Industry”]
[slide title=”Internet-Specific Investments”]
[slide title=”Cleantech Investments”]
[slide title=”Investments by Stage of Development”]
[slide title=”Deal Volume by Stage of Development”]
[slide title=”First Time vs. Follow On Deals”]